While oil remains in the spotlight due to the crisis in the Ukraine, natural gas may be the money commodity for the long term. Utilities continue to switch to the fuel as a way to bridge the gap to renewables. Meanwhile, export demand is only rising in the face of the Russian conflict. That’s big news for the latest pick in our Best High Dividend Stocks Model Portfolio.
Our pick is one of the largest midstream firms in the nation. And while its huge portfolio includes plenty of crude oil muscle, a huge percentage of its pipes and storage facilities are geared toward natural gas. This puts our pick in the driver’s seat as the natural gas economy builds steam. Better still is that our pick’s cash flows are based on volumes rather than commodity pricing. With that, it’s able to keep the cash flowing back to its investors via a nearly 6% dividend yield.
With the stock going ex-dividend on Friday, April 29 (estimated date), it could be an optimal pick to add or increase your position in the stock.
To make room for this midstream stock pick and another energy player, we had to remove a different midstream firm and an asset manager from our list this week.
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
